Well, despite my less than satisfactory experience in getting my iPhone 4 repaired/replaced I am pleased to give some credit to the actual speed at which the local repairer (and the Vodafone store I took my phone back to) turned around the repair. OK - so like the Apple helpdesk person who said "the handset needs replacing" - the repair wasn't a repair - it was a straight replacement. BUT - I dropped my dead phone off late Monday and had a phone call first thing Thursday morning saying the replacement was back. Give a day either side for the couriers, the turn around was pretty much OK - and certainly well under the 5 working days Vodafone stated.
As for the new phone - the camera works like it is supposed to - even created my first iMovie HD yesterday.